Retailers' Online Margins Show Strong Improvement as Pricing Power Improves

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MyBuys E-commerce Wellness Index Surges 23%



Redwood City, CA—October 13, 2010—MyBuys, the leading provider of personalization for multi-channel retailers, today released the August 2010 edition of the MyBuys E-commerce Wellness Index™. The Index measures the overall health of U.S. e-commerce and tracks key trends among retailers. August 2010 revenue from full-priced items strongly surged by 28%, versus 2009, which drove the Wellness Index up 23% overall. The August results further the Index's recent trends, whereby discounted sales items fell by 25% of total revenue from 2009. Revenue from promoted goods dropped 11%. In addition to much stronger margins, total revenue for August also increased nearly 5% over the period which is stronger than recent months.

"The health of e-commerce continues to strengthen with these powerful August 2010 results," said Robert Cell, CEO MyBuys. "The Health and Wellness Index has consistently showed strong increases in 2010 margins versus a year ago but these margin increases have caused relatively flat top line revenue to occur even though gross margins are greatly improving within the industry. August was very positive as total revenue grew by a 5% mark as margins continued to be much stronger. This shows that retailers are successfully adjusting their marketing toward innovation and are less reliant upon price promotion as we head toward the all important holiday season."

The August 2010 Index also demonstrates the power of personalization as retailers saw a 7% increase in average order values for personalized transactions compared to sales without personalization.

 

Key Stats: September 2010 vs. September 2009

 

MyBuys E-Commerce Wellness Index ↑ 23%
Total revenue year-over-year ↑ 5%
Total revenues from products sold at list price ↑28%
Total revenues from products sold with a discount ↓ 11%
Depth of discounts ↓ 0.2%
Average Order Value for personalized transactions ↑7%

 

About the MyBuys Ecommerce Wellness Index™

The MyBuys Composite Index aggregates total sales, non-promoted sales, discounted sales performance, depth of discounts, AOV and consumer impulse response from our more than 300 MyBuys clients.

About MyBuys

MyBuys is the leading provider of personalization for multi-channel retailers. The company builds deep profiles based on each individual shopper's behavior, then uses a patented portfolio of algorithms and real-time optimization to deliver the most relevant recommendations. MyBuys' clients are increasing engagement by over 100% across all channels, average order value by 45 percent, conversion rates by 90 percent, and boosting overall online revenue 10-30%. Over 300 companies, including more than 70 of the Internet Retailer Top 500, partner with MyBuys to offer intelligent, personalized recommendations to their shoppers. Based in Redwood City, Calif., MyBuys is a privately held company. Visit them online atwww.mybuys.com.

News Source : Retailers' Online Margins Show Strong Improvement as Pricing Power Improves


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